Hold Steady On The Ringgit


 

The recent comments by Bank Negara Malaysia (BNM) governor Abdul Rasheed Ghaffour that the ringgit should be higher based on fundamentals is correct.
This is not a shift in policy or position because his predecessor Nor Shamsiah Mohd Yunus made similar observations when the ringgit weakened before, following which it strengthened.
BNM does not reveal their preferred long-term ringgit value but the governor’s comments align with the market consensus that the underlying exchange rate should be stronger. This is a perfectly conventional and sensible position.
It also reminds people that you will not get RM4.70-RM4.80 to the US dollar for long, so better to take advantage of it now before the ringgit reverts to more normal levels as it has done so often in the past.
Many factors affect the value of the ringgit. The depreciation in the last few days reflects market noise, sentiment and reactions to news or an absence of it.
Investors see better news and returns overseas so they sell ringgit to buy dollar assets. They might also see bad news around the world and buy US dollars or Singapore dollars as safe havens.
They do not see very much good or bad news about Malaysia to change their minds on that for now.
The depreciation has caused overshooting so the current spot exchange rate is lower than underlying factors suggest it should be.
Normally the market will correct this when it looks again at the fundamentals. At the moment investors are speculating rather than looking at fundamentals.
Fundamental economic conditions in Malaysia are sound with well-managed monetary policy and interest rates, stable fiscal policy, slower inflation, lower unemployment and higher economic growth compared to other countries. Growth in 2023 was 1.1% in Singapore compared to 3.7% in Malaysia.
Ironically Malaysia is a victim of its own success because inflation was lower here than elsewhere. Prices elsewhere, in dollars for example, have risen so you need more dollars to buy the same products. To get these you sell ringgit.
Due to lower inflation here interest rates have been lower. This creates an interest rate differential compared to other countries and so funds flow to higher interest rate options, investors sell ringgit to buy dollars and invest in higher interest rates in US for example.
Reversing this implies raising interest rates here, which is clearly harmful to growth and borrowers. There is also no reason to raise interest rates when inflation is slowing.
Essentially the inflation and interest rate cycle here has been better than most places and is not synchronised so you get an overshooting exchange rate which is the shock absorber for these effects.
So BNM can only help to maintain financial stability in line with its mandate by making sure markets are stable and there is a good inflow of funds. This is what it is doing now and it is a sound policy.
To do this BNM has intensified engagements with companies and investors to encourage inflows into the foreign exchange market. This is good advice because the ringgit is undervalued and will appreciate soon.
Malaysian companies make investments and profits overseas in dollars and other foreign currency. If they repatriate it now this will create demand for ringgit and support its value so the exchange rate will appreciate.
This is not the first intervention like this. BNM regularly involves itself in the markets to make sure there is investor interest and liquidity in ringgit trades and to ensure anyone who wants to buy ringgit can find a supplier.
This is part of its mandate to create financial market stability. - FMT


Artikel ini hanyalah simpanan cache dari url asal penulis yang berkebarangkalian sudah terlalu lama atau sudah dibuang :

http://malaysiansmustknowthetruth.blogspot.com/2024/02/hold-steady-on-ringgit.html

Kempen Promosi dan Iklan
Kami memerlukan jasa baik anda untuk menyokong kempen pengiklanan dalam website kami. Serba sedikit anda telah membantu kami untuk mengekalkan servis percuma aggregating ini kepada semua.

Anda juga boleh memberikan sumbangan anda kepada kami dengan menghubungi kami di sini
How Anwar Can Power The Ringgit

How Anwar Can Power The Ringgit

papar berkaitan - pada 20/2/2024 - jumlah : 198 hits
The value of the ringgit over time in a freely floating market is always a reflection of what the market thinks is the state of the economy political stability and outlook after taking into account what is happening results achieved and imp...
Why Is The Ringgit Falling

Why Is The Ringgit Falling

papar berkaitan - pada 24/2/2024 - jumlah : 220 hits
The Malaysian ringgit has fallen 4 8 this year and we have not even reached the end of February The ringgit briefly touched 4 80 to the US dollar the lowest since September 1998 when it reached 4 8850 to the dollar and a fixed exchange rate...
The Anwar Mahathir Feud Is A Factor In The Ringgit S 26 Year Low

The Anwar Mahathir Feud Is A Factor In The Ringgit S 26 Year Low

papar berkaitan - pada 26/2/2024 - jumlah : 138 hits
The leaders of the ancien r gime will likely be retaliating against Anwar s action by selling off their assets in Malaysia in order to trigger a loss of confidence in the ringgit Nehru Sathiamoorthy This week by touching RM 4 80 to the doll...
The Ringgit Will Continue Falling Here S Why

The Ringgit Will Continue Falling Here S Why

papar berkaitan - pada 4/3/2024 - jumlah : 122 hits
The ringgit falls the public outcry starts the opposition starts blaming the government for the ringgit s fall the government says the ringgit s performance is out of its control Rinse and repeat ad infinitum No matter who is in power this ...
Out With The Old In With The New Sustainable Spring Shapewear Guide

Out With The Old In With The New Sustainable Spring Shapewear Guide

papar berkaitan - pada 20/2/2024 - jumlah : 173 hits
With every new season especially transitioning from winter to spring we always consider adding new pieces to our wardrobes And while we might be excited to do so it s important to always remember the environmental impact that our fashion ch...
Madani White Rice Pr Blunder Is The Bersatu Mp Wholly Behind Pm

Madani White Rice Pr Blunder Is The Bersatu Mp Wholly Behind Pm

papar berkaitan - pada 20/2/2024 - jumlah : 277 hits
While there is no evidence that he s a saboteur whose real allegiance remains with Perikatan Nasional the optics have certainly badly damaged the reputation of the unity government AS communication gaffe goes nothing can go as wrong as the ...
State Of The Art Invisalign The Method Behind Beautiful Smiles

State Of The Art Invisalign The Method Behind Beautiful Smiles

papar berkaitan - pada 19/2/2024 - jumlah : 130 hits
A beautiful smile goes beyond mere beauty indicating the confidence and health Dr Draheim and his team of experts in orthodontics will be able to provide you with personalized solutions that meet your unique needs The team is committed to k...
Is Ph The New Bn When It Comes To Reforms

Is Ph The New Bn When It Comes To Reforms

papar berkaitan - pada 19/2/2024 - jumlah : 128 hits
Once there was hope that the Pakatan Harapan administration would transform Malaysia and its institutions but recent events have proved disappointing The reformist prime minister has instituted no reform the infamous anti kleptocratic campa...
Aziz Harun Dance In The Rain Chord

Aziz Harun Dance In The Rain Chord

papar berkaitan - pada 20/2/2024 - jumlah : 105 hits
E I see you on the weekends F m But you know that s not enough Bm Cause every time the week ends C I m just back in my room F m watching movies Am Listening to Stevie E B Wondering bout you E I wish we could dance in the rain C m My hands o...
Wef Mengakui Malaysia Sebagai Kuasa Industri Semikonduktor Global

Deputy Minister Sarawak Premier Recently Held Discussions With Pm Anwar On Padu

Hari Raya Harga Ayam Tidak Melambung Warga Net Puas Hati

Cops Seek Witnesses To Lorry Car Crash Near Bandar Baharu

How East M Sia Can Lead In Political Transformation

Lelaki Memandu Tanpa Lesen Cukai Jalan Dicekup Bawa Mercun

Ringgit Slips On Higher Than Expected Us Inflation Data

Enhancing Home Value Through Interior Design



Info Dan Sinopsis Drama Berepisod Kuih Muah Tonton

10 Filem Indonesia Terbaru Best 2023 2024 Juga Tersedia Online

10 Filem Melayu Terbaru Best Di Platform Online Netflix Malaysia 2024 Mesti Tonton

Resepi Biskut Coklat Rice Paling Tak Banyak Bahan dan Senang Ingat

Biodata Nor Iman Aliff Rakib Aliff Sor Dechapan Atlet Muay Thai Malaysia Yang Gegarkan One Championship Seangkatan Johan Ghazali Jojo


Lafaz Niat Puasa Ganti Dan Hukum Gabung Puasa Ganti Dan Puasa Enam Syawal

Orang Pertama Menunaikan Solat

Town And Country A Custom Suzuki Tu250 Grasstracker From Taiwan

Meludah Sambil Pegang Tiang Lampu Jalan Pegawai Pln Di Ntt Tewas Tersetrum

Resepi Begedil Ayam Paling Sedap

Salam Aidilfitri 1445 Hijrah 2024 Masihi